“Basic conditions. The digital asset market enters 2026 under the best possible conditions. As of January 5, Bitcoin and Ethereum are already up 7%, while some speculative altcoins such as Dogecoin have jumped nearly 30%. For this momentum to turn into sustained growth to new all-time highs, three major hurdles need to be overcome, the team believes […]”, — write: businessua.com.ua
Basic conditions. Digital asset market enters 2026 under the best possible conditions . As of January 5, Bitcoin and Ethereum are already up 7%, while some speculative altcoins such as Dogecoin have jumped nearly 30%. For this momentum to turn into sustained growth to new all-time highs, three major hurdles need to be overcome, according to the Bitwise team.
Key points of this article:
- The cryptocurrency market started 2026 with positive dynamics, despite the historic one cleaning in 2025.
- The CLARITY Act, currently being debated in the US Congress, could provide a crucial stable legal framework for this sector.
Evacuation of systemic liquidation risks According to Bitwise, the former a serious challenge already behind October 10, 2025 the cryptocurrency market experienced the biggest wave liquidations in its history when $19 billion worth of futures positions were liquidated within 24 hours. This event caused fears chain reaction when market makers or hedge funds might have been forced sell shares.
Lack of significant defaults during the fourth quarter of 2025 suggests that system players absorbed the shock. Growth earlier this year suggests that investors have already factored in this event “cleaning” and that risk mass sales, related to this crisis, now avoided .
US legislation must now accelerate to ensure a successful start to 2026.
Legislative Franchising: The Importance of the CLARITY Act The second pillar of this growth is regulatory. A market structure bill known as the CLARITY Act is currently being debated in the US Congress. The Senate plans to propose January 15 for markup, which is a crucial step in harmonization agreements between the committees on agriculture and banking.
Accepting this the law there are fundamental to support the current pro-cryptocurrency climate among regulatory authorities (SEC, CFTC). According to David Sachs, the “crypto king” of the White House, agreement never been so close. Forecast markets such as Polymarket estimate the chances of adoption by the end of the year in 82% which will finally ensure a stable legal basis for institutions in United States .
The cryptocurrency market remains highly correlated with the US stock market.
Dependence of Bitcoin on the stability of stock markets After all, the market cryptocurrency cannot flourish without some stability on traditional financial markets . Although this sector does not have a strong correlation with stocks, a sharp drop (eg a 20% drop in the S&P 500 inevitably will lead to the withdrawal of capital from assets that are considered risky .
To date, the probability recession in in 2026 remains low and markets are mostly expecting a year of growth stock indices . As long as stock markets avoid a potential crash technological bubble or systemic crisis the environment will remain favorable for further accumulation on cryptocurrency market.
As such, the sector is benefiting from a rare confluence of circumstances: rising institutional adoption, growing tokenization, and unprecedented political support since January 2025. If the CLARITY Act passes the legislative stages this month and global markets remain balanced, the momentum for early 2026 may mark the beginning of a historical bull cycle .
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